Ignorance is the basic foundation of graft and corruption. The BIR-corrupt brigade is maximizing its full potential and profitability. Fishes find strength, courage and competence in numbers. They had conquered their predators/enemies by grouping together in order to make them bigger than their enemies. You too can become bigger than the fear that lingered in your minds and hearts. Join 'JuanTALKS' now and share your knowledge and experiences to other Filipinos.

Saturday, 5 October 2013

Last 2012, Honorable Kim Henares scrapped the exemption of condominium-association due from VAT and income tax. Thanks to her, condo-unit owners/tenants have to financially suffer because the Condominium Corporations shall pass on to them the said taxes.

This 2013, a Court declared her order ‘INVALID’. However, it is still being challenged so its implementation may be somehow delayed.

My suggestion to you is to secure the same Court’s ruling so that the excess money attributable to the payment of VAT and income tax by condo unit owners/tenants not only may be returned to them but also the ‘paying it directly to the BIR’ may be stopped/avoided.

Otherwise, you just give yourselves a time to attend my seminar so that you may learn and quickly apply the true and correct ways in doing the above suggestions.**IMPORTANT ANNOUNCEMENTThe Courts and BIR's known language.... TAX ACCOUNTINGAttend the Workshop/Training/Seminar#taxaccountingcampaign, #emelinotmaestro, Sep 8, 2013

Many taxpayers confirmed that the use of GAAP (now known as PFRS) created more tax troubles, penalties and problems to a taxpayer than TAX ACCOUNTING

Recently, The National Society of Accountants in the United States of America says, “The cost of preparing generally-accepted-accounting-principles-based financial statements is EXCESSIVE and in many cases UNNECESSARY. Translating tax return information into a financial statement format can be a COST EFFECTIVE strategy.” which means that YOU DON'T NEED TO USE AND BE MANIPULATED/FORCED TO USE THE GAAP/PFRS.

The Bureau of Internal Revenue's position between GAAP and TAX ACCOUNTING can be deciphered from "The recording and recognition of business transactions for financial accounting purposes, in a majority of situations, differ from the application of tax rules on the same transactions resulting to disparity of reports for financial accounting vis-a-vis tax accounting (RR 8-2007). In case of differences, the provisions of the Tax (accounting) Code shall prevail (RMC 22-2004). Therefore, it is the financial statements which is in conformity with the Tax (accounting) Code that should be attached in the filing of Income Tax Return (BIR Ruling No. M-111-2006)."

Tax Accounting has three (3) layers which would start with value added tax accounting, then would be followed by withholding tax accounting and would end with income tax accounting. All of them shall comprehensively tackle the three (3) important requirements of the Tax Code which the BIR expects you to be knowledgable of. They are document accounting, book-entry making and timely-and-correct report-filing.

WHO MUST ATTEND1, Those who are currently employed so that he/she may increase his/her value in an organization thus his/her salary/wage2, Those who are currently looking for an employer so that he/she may increase his/her marketability/chance to be hired and get his/her desired salary/wage3, Those who may have an opportunity to receive an eLA so that he/she may have an opportunity to stop/avoid existing/potential BIR’s illegal acts/advances and harassment

VENUESofitel Luxury Hotel, PICC Complex, Pasay City

INVESTMENT FEERegular rate -29,289 pesosEarly bird rate -14,289 pesos

WHERE TO GET TICKETSSMTickets' Online and SM CinemaFor your convenience, please deposit your investment fee at Bank of the Philippine Island (any branch), Saving Account No. 9579-0638-47 under the name of EMELINO T MAESTRO then scan-email the BPI-validated deposit slip to KATAXPAYER@GMAIL.COM..

Friday, 4 October 2013

Another intriguing acts of the BIR this 2013 is to require you to pay the deficiency income tax due to non withholding of a tax even if you already paid the subject withholding tax upon the receipt of its assessment notice.This BIR-action scrapped and reversed its 20-year old rule. For your information, the National Internal Revenue Code allows the late payment of taxes. Provided, that you shall pay its corresponding interest, surcharge and penalty. In other words, if you failed to withhold a tax, you can still pay it after a BIR examiner had discovered it. Meaning, the NIRC permits that upon payment of withholding tax, the concerned expenses shall be allowed again as a deduction from your gross sales, receipts or income.Please join and be a member of RR 12-2013 GROUP so that together, we can file a special court case against this infringement of rights and privileges.IMPORTANT EVENT....

Managerial Accounting and Financial Accounting, according to many taxpayers who became the victims of BIR scalawags, are the sources of graft and corruption because they are incomprehensible and inadmissible as far as the BIR is concerned.

To stop the BIR's harassment, oppression and corruption, the law of the State is encouraging, if not commanding, the taxpaying public to use the TAX ACCOUNTING..

IMPORTANT NEWS...

Many taxpayers confirmed that the use of GAAP (now known as PFRS) created more tax troubles, penalties and problems to a taxpayer than TAX ACCOUNTING

Recently, The National Society of Accountants in the United States of America says, “The cost of preparing generally-accepted-accounting-principles-based financial statements is EXCESSIVE and in many cases UNNECESSARY. Translating tax return information into a financial statement format can be a COST EFFECTIVE strategy.” which means that YOU DON'T NEED TO USE AND BE MANIPULATED/FORCED TO USE THE GAAP/PFRS.

The Bureau of Internal Revenue's position between GAAP and TAX ACCOUNTING can be deciphered from "The recording and recognition of business transactions for financial accounting purposes, in a majority of situations, differ from the application of tax rules on the same transactions resulting to disparity of reports for financial accounting vis-a-vis tax accounting (RR 8-2007). In case of differences, the provisions of the Tax (accounting) Code shall prevail (RMC 22-2004). Therefore, it is the financial statements which is in conformity with the Tax (accounting) Code that should be attached in the filing of Income Tax Return (BIR Ruling No. M-111-2006)."

Tax Accounting has three (3) layers which would start with value added tax accounting, then would be followed by withholding tax accounting and would end with income tax accounting. All of them shall comprehensively tackle the three (3) important requirements of the Tax Code which the BIR expects you to be knowledgable of. They are document accounting, book-entry making and timely-and-correct report-filing.

WHO MUST ATTEND1, Those who are currently employed so that he/she may increase his/her value in an organization thus his/her salary/wage2, Those who are currently looking for an employer so that he/she may increase his/her marketability/chance to be hired and get his/her desired salary/wage3, Those who may have an opportunity to receive an eLA so that he/she may have an opportunity to stop/avoid existing/potential BIR’s illegal acts/advances and harassment

VENUESofitel Luxury Hotel, PICC Complex, Pasay City

INVESTMENT FEERegular rate -29,289 pesosEarly bird rate -14,289 pesos

WHERE TO GET TICKETSSMTickets' Online and SM CinemaFor your convenience, please deposit your investment fee at Bank of the Philippine Island (any branch), Saving Account No. 9579-0638-47 under the name of EMELINO T MAESTRO then scan-email the BPI-validated deposit slip to KATAXPAYER@GMAIL.COM..

RR 6-2013 says that any disposition of shares of stock of a closed/family corporations shall either be based on the adjusted value of land and its improvements or fair value of the shares of stocks whichever is higher.

The term "disposition' means the sale, exchange, barter, donation and inheritance of shares of stocks of a family/closed corporation.

The term "land and its improvements' refers to the land and anything found thereon as they are shown in the latest Balance Sheet of the family/closed corporation.

Again, the 100-year old rule had been knowingly twisted and then changed without a valid consultation with the taxpaying public.

Comical as it is, the disposition of shares of stocks of corporations registered at the Philippine Stock Exchange is exempted or treated differently. Meaning, the sale, exchange, barter, donation and inheritance of the said shares of stocks shall be based on their fair market value or book value.

The term 'fair market value' means the amount of the said shares of stocks that is shown on the bulletin board of the Philippine Stock Exchange.

The term 'book value' means the amount of the outstanding capital stock of the concerned corporations plus their accumulated retained earnings divided by the outstanding number of shares.

The difference between the two types of disposition of shares of stocks is only the place where the shares of stocks is being sold... For family/closed corporations, their shares of stocks are being disposed of outside the jurisdiction of the Philippine Stock Exchange but for those public corporations' shares of stocks, they are being disposed of using the facilities of the Philippine Stock Exchange.

The BIR is giving a preferential treatment or in other words, exempting the public corporations from paying more taxes while it is imposing more taxes to family/closed corporations.

For your information, the holders and owners of prime lots and improvements thereon are not family/closed corporations but most of them are public corporations.

Treating the disposition of shares of stock differently is amending, revoking, repealing the existing laws of the State.

ETM suggests that this patently erroneous RR 6-2013 shall be brought to the attention of the Regional Trial Court so that it could be scrapped.

Wednesday, 2 October 2013

RMC 57-2013, UNUSED INPUT TAX, DISALLOWED EXPENSEEMELINO T MAESTRO DISAGREES; 10-2-2013ATTEND HIS TAX CONSULTING COURSE TO BE UPDATEDWhoever penned the BIR Ruling stated in Revenue Memorandum Circular No. 57-2013 is an amateur who pretends to be a professional.Here its dispositive case, viz;"It is noted, based on the above-cited provisions, that unutilized creditable input taxes attributable to zero-rated sales can only be recovered through the application for refund or tax credit. Nowhere in the Tax Code can we find a specific provision expressly providing for another mode of recovering unapplied input taxes, particularly your proposition that unapplied input taxes may be treated outright as deductible expense for income tax purposes. Thus, your proposition, that accumulated and unapplied input value-added tax (VAT) arising from Cekas’ purchase of goods and services after the expiration of the two (2) year prescriptive period may be expensed outright, is hereby denied for lack of legal basis.”

Under Revenue Regulations No. 16-2005, unused input taxes can be claimed as a deduction from gross income, viz;

"SEC. 4.114-2, Withholding of VAT on Government Money Payments and Payments to Non-Residents. – (a) The government or any of its political subdivisions, instrumentalities or agencies, including government-owned or controlled corporations (GOCCs) shall, before making payment on account of each purchase of goods and/or of services taxed at 10% VAT pursuant to Secs. 106 and 108 of the Tax Code, deduct and withhold a final VAT due at the rate of five percent (5%) of the gross payment thereof. The five percent (5%) final VAT withholding rate shall represent the net VAT payable of the seller. The remaining five percent (5%) effectively accounts for the standard input VAT for sales of goods or services to government or any of its political subdivisions, instrumentalities or agencies including GOCCs, in lieu of the actual input VAT directly attributable or ratably apportioned to such sales. Should actual input VAT exceed five percent (5%) of gross payments, the excess may form part of the sellers’ expense or cost. On the other hand, if actual input VAT is less than 5% of gross payment, the difference must be closed to expense or cost."

"RMO 4-2007. The five percent (5%) final VAT withholding rate shall represent the VAT payable of the seller. The remaining seven percent (7%) effectively accounts for the standard input VAT for sales of goods or services to government or any of its political subdivisions, instrumentalities or agencies including GOCCs in lieu of the actual input VAT directly attributable or ratably apportioned to such sales."

Input tax cannot exist without purchases/expenses. Therefore, the original source of input tax is an expense and to claim an input tax as an input tax relies on the shoulder of the taxpayer and not to the whims and caprice of any BIR officials (See VAT law in relation to Section 34, NIRC)

Finally, a creditable input tax partakes as a receivable to the Philippine Government, through the Bureau of Internal Revenue. If the same, at the option of the taxpayer, can no longer be claimed as a tax refund or credit, the taxpayer may consider it as a bad debt which is similar to uncollectible receivables from customers, clients and employees...

Erroneous and preposterous....Without legal and factual legs to stand on ....

Managerial Accounting and Financial Accounting, according to many taxpayers who became the victims of BIR scalawags, are the sources of graft and corruption because they are incomprehensible and inadmissible as far as the BIR is concerned.

To stop the BIR's harassment, oppression and corruption, the law of the State is encouraging, if not commanding, the taxpaying public to use the TAX ACCOUNTING..

IMPORTANT NEWS...

Many taxpayers confirmed that the use of GAAP (now known as PFRS) created more tax troubles, penalties and problems to a taxpayer than TAX ACCOUNTING

Recently, The National Society of Accountants in the United States of America says, “The cost of preparing generally-accepted-accounting-principles-based financial statements is EXCESSIVE and in many cases UNNECESSARY. Translating tax return information into a financial statement format can be a COST EFFECTIVE strategy.” which means that YOU DON'T NEED TO USE AND BE MANIPULATED/FORCED TO USE THE GAAP/PFRS.

The Bureau of Internal Revenue's position between GAAP and TAX ACCOUNTING can be deciphered from "The recording and recognition of business transactions for financial accounting purposes, in a majority of situations, differ from the application of tax rules on the same transactions resulting to disparity of reports for financial accounting vis-a-vis tax accounting (RR 8-2007). In case of differences, the provisions of the Tax (accounting) Code shall prevail (RMC 22-2004). Therefore, it is the financial statements which is in conformity with the Tax (accounting) Code that should be attached in the filing of Income Tax Return (BIR Ruling No. M-111-2006)."

Tax Accounting has three (3) layers which would start with value added tax accounting, then would be followed by withholding tax accounting and would end with income tax accounting. All of them shall comprehensively tackle the three (3) important requirements of the Tax Code which the BIR expects you to be knowledgable of. They are document accounting, book-entry making and timely-and-correct report-filing.

WHO MUST ATTEND1, Those who are currently employed so that he/she may increase his/her value in an organization thus his/her salary/wage2, Those who are currently looking for an employer so that he/she may increase his/her marketability/chance to be hired and get his/her desired salary/wage3, Those who may have an opportunity to receive an eLA so that he/she may have an opportunity to stop/avoid existing/potential BIR’s illegal acts/advances and harassment

VENUESofitel Luxury Hotel, PICC Complex, Pasay City

INVESTMENT FEERegular rate -29,289 pesosEarly bird rate -14,289 pesos

WHERE TO GET TICKETSSMTickets' Online and SM CinemaFor your convenience, please deposit your investment fee at Bank of the Philippine Island (any branch), Saving Account No. 9579-0638-47 under the name of EMELINO T MAESTRO then scan-email the BPI-validated deposit slip to KATAXPAYER@GMAIL.COM..